Drop in operating income at Skanska

Nordic contractor Skanska has reported a drop in operating income for the first quarter of 2012, with SEK148 million (€16.5 million) achieved compared to SEK451 million (€50.2 million) in the same period in 2011.

The contractor attributed the drop to weak performances in its residential development and construction segments.

Skanska president and CEO Johan Karlström said, "Earnings in our construction units are always seasonally weak in the first quarter. This is especially clear in our Central European operations, where civil construction accounts for a majority of revenue."

Order bookings in the first quarter totalled SEK25.1 billion (€2.8 billion), 7% higher than revenue during the 12 months ending 31 March. Order backlog increased by 10% year-on-year to SEK152.9 billion (€17 billion). The contractor said its order backlog was equivalent to about 16 months of construction.